Andrew Koleda 0:08
Hi there I am Andrew Koleda from On Demand HR, and as part of our ongoing commitment to keeping you up to date with current HR and Workplace Relations changes, today we’re highlighting some of the key considerations released in the 2020 budget. We’re going to begin with a close look at the JobMaker scheme and finish by touching on some other key considerations and questions arising from what is a significant budget. In terms of the JobMaker scheme over the next 12 months until six of October 2021. It is anticipated that it will create 450,000 jobs for those aged between 16 to 35, at an estimated cost of $4 billion.

Andrew Koleda 0:57
Additionally, it’s available to businesses of all sizes, with the only exclusion that was discussed last night is that it’s not available to the big four banks. It’s understood that the Morrison government believes that those aged 16 to 35 and are additionally currently receiving benefits and otherwise are unemployed are the cohort that has been most impacted by Covid 19. JobMaker has been specifically designed to stimulate employment in this space.

Andrew Koleda 1:33
For new eligible hires between the ages of 16 to 29, businesses will receive a $200 per week wage subsidy. For new eligible hires between the ages of 30 and 35, businesses will receive $100 per week wage subsidy.

Andrew Koleda 1:54
To be eligible businesses must engage these new employees for a minimum of 20 hours per week. And the new employee must for at least one of the past three months immediately prior to their engagement the receiving JobSeeker, Youth Allowance or parenting payments. JobMaker is available to new hires only, and is subject to businesses increasing that overall headcount when using the headcount as at 30, September 2020, as a baseline. Therefore, by design businesses who are simply replacing positions from termination or redundancy are not eligible for the JobMaker scheme.

Andrew Koleda 2:43
Based on the current information available on the ATO website reporting for the JobMaker scheme appears to be done through single touch payroll, which leads us to believe that it will function in a similar manner to the JobKeeper program, although it is unclear if payments will be made monthly or quarterly.

Andrew Koleda 3:05
Businesses who are currently under the JobKeeper scheme are not eligible for this additional subsidy and therefore cannot double dip. However, what is not clear at this time is if JobKeper legacy businesses, those that were eligible for JobKeeper 1.0 but not for JobKeeper 2.0 will be eligible as well. As well as businesses that cease to be eligible for JobKeeper in either January 2021, or April 2021 will be made eligible for the JobMaker program to transfer across to this as such. At this time, we simply just don’t know.

Andrew Koleda 3:50
At this stage JobMaker creates two key questions that businesses should consider. Firstly, how exactly do businesses target those employees who are currently receiving these benefits. And number two, businesses who are looking to take advantage of the JobMaker scheme will need to make some changes to their pre employment process to ensure that the candidate meets with the eligibility requirements of the scheme before they are employed.

Andrew Koleda 4:22
Based on these final two points, we feel that the scheme generally will be of benefit to those businesses looking to expand their headcount regardless of the scheme, but is relatively unlikely to drive a change in business behavior. It may be also used as a selling point by eligible candidates as they apply and look for jobs.

Andrew Koleda 4:46
A couple of other key considerations we’ve picked out from the budget, which are less notable but may have significant impact. Firstly, the Morison government has signaled their intention to continue with their proposed increases to the compulsory employeer superannuation contributions. This in effect may impact the cost of retaining employees or create increase the cost of creating new jobs during the covid recovery phase and mitigate some of the stimulatory measures. But we’ll have to wait and see how this all plays out.

Andrew Koleda 5:24
Also, from our perspective here and On Demand HR, the announcement regarding JobMaker all but confirms that the JobKeeper stimulus will end in March 2021, with no further extensions, and businesses will need to start making plans for life after JobKeeper. The final thought from here from the team here at On Demand HR is that with so many new considerations ever changing HR and Workplace Relation conditions, that now would be a great time to reach out and schedule a workplace relations review to ensure that your HR strategy is in alignment with your overall business strategy. As a country, we begin to transition from crisis response to recovery.

Andrew Koleda 6:18
So to arrange a strategic review or discuss any other HR or Workplace Relations matters or challenges that your business is facing, please reach out to the team here at On Demand HR by visiting www.ondemandhr.com.au. So thanks very much for your attention and from the team here at On Demand HR it’s bye for now.